ALBANIAN HUMAN DEVELOPMENT REPORT 2000 Group of Experts Dr Ylli Çabiri, Chairperson Dr Arjan Starova, Milva Ekonomi, Piro Misha, Remzi Lani, Dr Vasillaq Leno, Prof Dr Ylli Vejsiu in collaboration with the following institutions from civil society: Human Development Promotion Center (HDPC) Institute of Contemporary Studies (ICS) Center for Sociological, Political and Communication Studies (CSPCS) Center for Economic and Social Studies (CESS) Albanian Institute for International Studies (AIIS) Urban Research Institute (URI) Albanian Demography Association (ADA) and Alfred Peza, Andi Gjonej, Andrea Stefani, Arjana Misha, Prof Dr Arqile Bërxholi, Prof Dr Artan Fuga, Artan Hoxha, Besnik Mustafaj, Blendi Fevziu, As Prof Dr Bukurie Dumani, Eduart Prodani, Ela Banaj, Prof Dr Ermelinda Meksi, Fatos Lubonja, Prof Dr Genc Ruli, Godiva Rëmbeci, Ilda Bozdo, Jeffrey A Brez, Dr Lekë Sokoli, Dr Lindita Xhillari, Prof Dr Kastriot Islami, Dr Makbule Çeço, Prof Dr Maksim Cikuli, Margarita Caci, Prof Dr Marta Muço, Dr Milika Dhamo, As Prof Dr Pëllumb Xhufi, Remzi Qerimi, Skënder Shkupi, Shkëlzen Maliqi, As Prof Dr Telemak Xhaxho, Prof Dr Vladimir Misja, Prof Dr Ylli Pango, Dr Zyhdi Dervishi, statistical tables and figures prepared by: Vojsava Progri, Institute of Statistics an enormous support to the preparation of this report was provided by UNDP country representatives: Jan Wahlberg, Dr Parviz Fartash project coordination and management by Vladimir Malkaj, David Garrigos, Albi Greva UNDP Tirana in collaboration with the Institute of Statistics cover art: Ali Oseku, Albania 99 (250 x 180 cm, 1999) poetry on the back cover by Besa Myftiu, writer, emigrated to Switzerland translation of the poetry by Dr6 Uk Buçpapaj Evis CergaCerga, translator Prof6 Dr6 Xhevat Lloshi, editor of the Albanian version design and print by LILO sh6p6k6 - Tirana Copyright: Information contained in this report is not subject to copyright6 However, clear acknowledgement of the Albanian Human Development Report 2000 authorship is required, when using this information6 The views expressed herein are those of the authors of the report and do not necessarily reflect the views of the United Nations or the United Nations Development Programme6 The Albanian Human Development Report 2000 is available electronically through the Internet World Wide Web, at: http://wwwalundporg Note: - The report refers to the developments in the country until the end of March 2000 - This report is based mainly on official statistics, as well as data and figures provided by NGO-s and other collaborators6 Rruga Dëshmorët e 4 Shkurtit, Nr 35, Tiranë Tel +355 4 233148 - 9; Fax +355 4 232075 E-mail: registryal@undporg Internet: wwwalundporg 2 HUMAN DEVELOPMENT REPORT TABLE OF CONTENTS EXECUTIVE SUMMARY 5 CHAPTER I - ECONOMIC INSECURITY 9 1 1 POST-CRISIS RECOVERY? 9 UNSTABLE PRODUCTION GROWTH 9 LOW INFLATION 9 LACK OF CREDIT 10 A STABLE CURRENCY? 11 THE EUPHORIA OF FIGURES 11 SLOW PACE OF BUSINESS DEVELOPMENT 11 FOREIGN AID AND PUBLIC INVESTMENTS 13 1 2 FAMILY LIVING STANDARDS 14 HOUSEHOLD INCOME 15 HOUSING 16 MATERIAL CONDITIONS 17 1 3 EMPLOYMENT INSECURITY 18 THE LABOUR MARKET 18 SOCIAL PROTECTION 19 SOCIAL POLICIES 19 WAGES 20 CHAPTER II - SOCIAL INSECURITY 22 21 THE CITIZEN AND THE STATE 22 STATE AND POLITICS 22 STATE AND GOVERNANCE 23 ISOLATED CORRUPTION IN EUROPE OR PART OF EUROPEAN CORRUPTION? 24 STABILITY PACT AND ANTI-CORRUPTION INITIATIVE 24 2 2 HEALTH PROTECTION 25 2 3 EDUCATION 26 FUNDAMENTAL CHANGES 26 THE CHALLENGES 26 2 4 YOUTH IN SEARCH OF MORE SPACE 28 2 5 CRIMINALITY A DIFFICULT CHALLENGE 29 ORGANISED CRIME INCREASINGLY SOPHISTICATED 30 HUMAN TRAFFICKING 31 WOMEN AND CHILDREN VICTIMS OF ORGANISED CRIME 31 2 6 DRUGS 32 DRUG USERS 32 DRUG PRODUCTION AND TRAFFICKING 33 CHAPTER III - EMIGRATION 35 31 MASSIVE EMIGRATION 35 HISTORICAL OVERVIEW 35 EMIGRATION AFTER THE COLLAPSE OF COMMUNISM 35 MASSIVE EMIGRATION AN ESCAPE FROM ISOLATION 36 WHERE TO EMIGRATE? 36 CHANNEL OF TEARS 37 A BACKWARD ECONOMY THE MAIN FACTOR BEHIND EMIGRATION 38 WHY DO ALBANIANS EMIGRATE? 38 CHOICE OF THE COUNTRY FOR EMIGRATION 38 THE SITUATION OF EMIGRANTS 39 THE BALANCE OF LEGAL/ ILLEGAL EMIGRANTS 40 32 BRAIN DRAIN 41 CANADA PHENOMENON 42 33 THE IMPACT OF EMIGRATION 42 DOMESTIC LABOUR MARKET 42 EMIGRANTS REMITTANCES 43 ALBANIA: 2000 3 EMIGRATION AND INVESTMENTS 43 EMIGRATION AND EDUCATION 43 MULTICULTURAL INTEGRATION OR ASSIMILATION? 44 THE FAMILY AND EMIGRATION 44 CHAPTER IV - MIGRATION 46 41 HISTORICAL OVERVIEW 46 THE STAGES 46 THE DIRECTION OF MIGRATION 47 42 SOCIOLOGICAL ASPECTS 48 FAVOURED RURAL SETTLEMENTS 48 RURAL OR URBAN UNEMPLOYMENT? 49 43 MAIN CAUSES OF MIGRATION 50 TRANSITION IN A LIBERAL SOCIETY 50 WEAKENING OF ECONOMIC TIES IN THE VILLAGES 50 THE COLLAPSE OF THE FAMILY CLAN STRUCTURE 50 THE CITY AS AN IDEAL 50 NO NEED FOR SELF DEFENCE 51 44 MIGRATION IMPACTS 51 THE SOCIAL AND ECONOMIC CONSEQUENCES OF MIGRATION 51 THE TENSION CREATED BY URBANISATION 52 OLD AND NEW YARDSTICK 53 THE PSYCHOLOGICAL AND CULTURAL IMPACT OF URBANISATION 53 THE METROPOLIS 54 SATISFIED OR DISAPPOINTED? 55 CHAPTER V - ALBANIA WITH REFUGEES AND EMIGRANTS 57 51 THE KOSOVO CRISIS AND ALBANIA 57 52 DEATH BROUGHT US TOGETHER 59 53 THE IMPACT ON THE ECONOMY 61 54 HANDLING THE EMERGENCY 63 MANAGEMENT OF EMERGENCY 63 CIVIL SOCIETY AND THE KOSOVO CRISIS 64 ALBANIAN MEDIA IN 1999 A FLEETING CONSENSUS 64 55 NEW RELATIONS WITH THE INTERNATIONAL COMMUNITY 65 CO-OPERATION WITH NATO 65 CO-OPERATION WITH OSCE 66 ALBANIA AND THE COUNCIL OF EUROPE 66 UNITED NATIONS AGENCIES 67 ALBANIA AND ITS NEIGHBOURS DURING THE KOSOVO CRISIS 67 56 ALBANIA AND THE STABILITY PACT 67 ANNEXES - STATISTICAL DATA70 4 HUMAN DEVELOPMENT REPORT E XECUTIVE SUMMARY CHAPTER I: areas, or going abroad ECONOMIC INSECURITY CHAPTER II: Continuous and successful efforts have been SOCIAL INSECURITY made in Albania to stabilize the macroeconomic indicators After Gross Domestic Product fell Albania is still regarded as a country with poor abruptly in 1997 to the level of 1992, it has since levels of social, political and economic security increased by 8% every year In 1999, inflation and high levels of crime According to widely was almost nil and for the first time, there was accepted opinion, the inability of the state to no increase in the budgetary deficit After a sharp perform some of its vital functions is one of depreciation in 1997, the currency has shown a the most serious impediments to Albanias de- tendency to appreciate and then stabilize For- velopment and social stability during the post eign aid still provides the lions share of finance communist transition for public investment and by the end of 1999 it totalled approximately USD 27 billion In the There seems to be no social contract between last two years, foreign aid alone totalled USD the government and the citizens This is linked 680 million But the disbursement rate of funds to the manner in which the country has been is low and only 50% of the funds have been governed in the last ten years, as well as the way spent The country continues to have a prob- in which the political and economic model for lem absorbing aid Albania was conceived Capitalism has often been perceived as a game with no rules, where Despite the fact that economic growth has been getting rich justified breaking the law and where real and visible it has not had a substantial im- participation in politics was sometimes seen as pact on the life of Albanians The Albanian fam- a fast way to prosper While this kind of capi- ily remains poor and has little income and inad- talism has created dynamism it has also encour- equate living space Only one in five families aged mass idleness by promoting the mentality thinks that it has enough resources for a decent that one can get rich without really having to life and 20% of households receive just 5% of work, or by being corrupt the countrys total wages Households estimate that they need a minimum income of Lek Public health in Albania faces both inherited and 31,000/month to lead a decent life, while the new problems The most serious have to do declared average income is Lek 17,000/month with the dilapidated health infrastructure, the lack The average living space is approximately 62 of pharmaceuticals and medical supplies and m2 or 146m2 per person Opportunities to buy the poor financial incentives for health profes- a house are limited sionals There is a strong tendency for people to travel abroad for treatment Unemployment remains high This is due to a lack of large scale investments, shortage of The education system of the last ten years faces skilled labour, a large informal market, a lack problems with curriculum and teaching meth- of coordinated state policies on employment, ods as well as the management of human re- inefficient labour market institutions and a low sources Insufficient financial resources are also level of credit During 1999, approximately 17% a serious problem The education budget has of families in Albania received assistance from been a constant of 9-10% of public expendi- the social protection programme During the ture annually or approximately 3-4% of the same year, 260,000 people received an old age GDP, but while 75% of this money goes to pension with an average pension of Lek 4,000 salaries only 9% goes towards investment Con- - 5,000 per month tributions from parents are small and are not included in the official statistics Big difficulties Faced with this economic insecurity,